A highly publicized dispute between Justin Sun, the founder of Tron, and WLFI, a cryptocurrency project linked to the Trump family, has escalated after Sun denounced a new governance proposal as 'one of the most absurd governance scams' he has encountered. In a detailed post, Sun alleged that the proposal is designed to penalize token holders who vote against it, potentially resulting in their tokens being locked indefinitely. He also claimed that he and other major token holders have been excluded from the voting process, with approximately 4% of the voting power under his control being frozen.
Sun questioned the legitimacy of the vote, suggesting that control of the protocol rests with anonymous wallet addresses, including a multisignature setup that can override outcomes and a separate account with the power to blacklist users. The proposal in question aims to overhaul token lockups across the WLFI ecosystem, with over 62 billion tokens subject to new terms, including multi-year lockups and vesting schedules. Token holders who do not accept the new terms would remain locked indefinitely. Sun's criticism was echoed by Simon Dedic, founder of Moonrock Capital, who stated that early investors had been 'rugged' by the proposal.
A spokesperson for World Liberty Financial defended the proposal, stating that it was designed to 'further align all participants in the WLFI ecosystem for the long-run' and ensure 'healthy market supply'. The backlash marks the latest episode in the deteriorating relationship between Sun and WLFI, which has been building for months. The dispute has been fueled by accusations of exploitation and misconduct, with both parties exchanging public criticisms and threats of legal action.